Question $7$

The current dividend of Best Food Org. is $$3\mathrm{.}0$ and is expected to grow at $11\mathrm{.}0\%$ for seven

years. After the first seven years, the growth rate of the dividends is expected to grow at a

constant $5\mathrm{.}0\%$ into the future.

If the cost of equity is $8\mathrm{.}0\%,$ what is the number that you need to use in CF$7$ in Excel or a

Financial Calculator when discounting the cash flow, as well as the intrinsic value of its stock?

Lastly, if the current stock price of the company is $$160,$ is it overvalued?

$$224\mathrm{.}23$; $$150\mathrm{.}67$; Yes

$$229\mathrm{.}10$; $$185\mathrm{.}12$; No

$$221\mathrm{.}10$; $$162\mathrm{.}94$; Yes